The Rise of the 'Invisible Hand' Metaphor

Abstract

This article accounts for the increase in the use of Smith’s “invisible hand” metaphor near the end of the nineteenth century. I provide evidence that three interrelated factors can explain the popularization of the metaphor among economists. First, the metaphor was used by economists who belonged to the English Historical School as an exemplar of the deductive way of economic thinking. Second, the Moral Sciences Tripos at Cambridge began to train generations of economists, many of whom were historicists. Third, The Wealth of Nations was invoked by politicians as support for, or even proof of, the thesis that free trade or laissez faire in general was the undisputed goal of economic policies.

Keywords: Adam Smith, English Historical School, the invisible hand, laissez faire.

JEL Classification: B12, B30